Clean Harbors Inc (CLH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,382,870 | 6,129,710 | 5,653,700 | 4,131,520 | 4,108,900 |
| Total stockholders’ equity | US$ in thousands | 2,247,510 | 1,922,320 | 1,513,890 | 1,341,550 | 1,269,810 |
| Financial leverage ratio | 2.84 | 3.19 | 3.73 | 3.08 | 3.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,382,870K ÷ $2,247,510K
= 2.84
The financial leverage ratio of Clean Harbors, Inc. has fluctuated over the past five years, ranging from 2.84 to 3.73. This ratio measures the proportion of the company's debt to its equity, indicating how much of its operations are financed through debt.
A decreasing trend in the financial leverage ratio from 2019 to 2023 suggests that the company has been relying less on debt and more on equity to finance its operations. This can be seen as a positive sign as it indicates a lower financial risk and a potentially stronger financial position.
However, the ratio increased sharply in 2021 before decreasing again in 2023. This could indicate fluctuations in the company's capital structure and financing decisions during those specific years.
Overall, the financial leverage ratio of Clean Harbors, Inc. indicates a mix of debt and equity financing over the years, with recent trends showing a move towards a more balanced and potentially less risky capital structure.
Peer comparison
Dec 31, 2023